IRS Publishes Proposed Regulations for the Historic Rehabilitation Tax Credit

Thursday, May 21, 2020 - 8:00am

The Internal Revenue Service will publish in tomorrow’s Federal Register proposed amendments to Treasury Regulation 1.47-7 concerning the historic tax credit (HTC), including rules to coordinate the new five-year period over which the credit may be claimed with other special rules for investment credit property. The proposed regulations include a general rule for calculating the HTC, definitions of “ratable share” and “rehabilitation credit determined,” and rules coordinating the changes to Internal Revenue Code (IRC) Section 47 with special rules in Section 50 related to dispositions, basis adjustment and income inclusion. The proposed regulations will assist taxpayers in understanding the changes to IRC Sections 47 and 50 and make it easier for taxpayers to comply with those changes. Comments on the proposed regulations are due July 21.

The proposed amendments will be discussed May 29 in the Novogradac Qualified Improvement Property Changes for Historic Rehabs Webinar.